The tension in the Middle East is on the rise once again on several fronts.
Despite the overall macro calamity experienced last week, bitcoins price surged from $75,000 to almost $82,000 within days, hitting its highest level since the start of the month.
However, the breakout attempt was halted at $82,000 due to more worrisome news from the Middle East. Theres also a technical aspect that helped prevent another leg up.
New Escalation
Numerous reports online suggested on Sunday that the United States had warned that hostilities between Saudi Arabia and Iran-backed Houthis have escalated, with some even suggesting that the latter‘s capital was under drone and ballistic missile attacks. BBC added that even some energy sites on the country’s Red Sea coast were targeted.
Saudi authorities reported that they intercepted and destroyed a ballistic missile fired at Riyadh on Saturday evening, claiming that there were no casualties and no new attacks.
“Iranian-supported Houthis have engaged in hostilities against Saudi Arabia, including civilian airports. This military conflict has the potential to escalate rapidly,” said the US State Department. The statement also warned Americans to “seriously reconsider travel to and through the region.”
Meanwhile, Daily Iran News, an X account with over 500,000 followers, claimed that Iran had issued “Code 100,” its highest alert level, for all armed forces earlier this morning. It covers the IRGC, the Army, and security forces.
Reacting to the news, Trump reportedly cut short his weekend at Camp David to return to the White House, citing the potential for significant escalation. Israels Netanyahu also reportedly headed back to his country after cutting the US trip short.
We saw last week that the substantial blows from the CLARITY Act setback, the Fed rate hikes, and the subsequent hawkish outlook couldnt keep BTC down for now. The asset dipped to $75,000 after the Senate vote, but went on an impressive run on Friday and Saturday, nearing $82,000 for the first time in two weeks.
This notable rally, though, changed some technical aspects. Ali Martinez reported that the TD Sequential, which flashed a buy signal when BTC slipped to $75,000, had flipped into a sell signal on Saturday evening, just as the cryptocurrency had tapped $81,500.
“That suggests short-term momentum may be getting stretched, and I‘m watching closely for signs that it’s time to lock in some profits,” he added.